Reese, who is a former municipal judge, operated her own tax preparation business. For tax year 2008, Reese prepared and filed multiple returns for individuals and claimed the First Time Homebuyer Credit on the returns. The clients, in fact, had not purchased a home. Reese had the refunds from the First Time Homebuyer Credits electronically deposited into an account she controlled. This prevented the clients from discovering that Reese had included false information on their returns.

Law enforcement estimates that Reese claimed more than $360,000 in improper refunds. The maximum penalty Reese can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.